A Nairobi court has issued warrants of arrest against three company directors accused of being involved in the VAT missing trader tax fraud scheme.
The warrants were issued for failing to appear in court.
Anti-corruption chief magistrate Thomas Nzyuki on Wednesday issued arrest warrants against Benson Otieno Kisero and Eunice Opili Likuyani, being directors of Wise Pick Trading Limited and Jemimhah Nasiche Mukungu, a director of Priteria Limited.
They were separately charged for the offences of fraud in relation to tax contrary to Section 97(c) as read with Section 104(3) of the Tax Procedures Act, 2015.
Following extensive investigations, the Commissioner- Investigations & Enforcement Department told the court that it was established that the companies were engaged in a tax fraud scheme commonly known as ‘Missing Trader’.
This involves the use of fictitious invoices to depict a genuine business transaction where none exists.
The entities were accused of mimicking genuine trade which requires that for every sale there must be a corresponding purchase since a trader cannot purport to sell that which they have not acquired.
KRA said purchase declarations as filed by the two companies were established to be false as the purported suppliers distanced themselves from the said transactions.
The Commissioner told court they found that Wise Pick Trading Limited and Priteria Limited engaged in the fraudulent scheme in order to reduce their tax liability by Kshs. 104,083,479 and 24,694,188 respectively.
In the same court, a warrant of arrest was also issued against Thomas Githangi Kanyi who was charged with engaging in a tax evasion scheme involving under-declaration of income.
Investigations established that between 2016 and 2019 the taxpayer concealed income amounting to Sh75,584,812/- hence reducing his tax liability by Sh20,652,670.
Additionally, the said trader is accused of failing to register for VAT despite having attained the Sh5,000,000 threshold for VAT registration occasioning a VAT loss of Sh11,257,559-.
Meanwhile, Michael Wafula Obunde, Jesse Michael Muganda and Clifford Otieno of Geo Freight Forwarders Ltd denied charges of making false customs entries using a KRA PIN registered to Di Lorenzo Limited and were granted bond of Sh200,000.
Also appearing before the court were Joseph Ndungu Guchecha, Ramadhan Kariuki Gitau, Edwin Wanjala Barasa, and Francis Kyalo Mwandandu who denied charges of stealing 38 tonnes of condemned milk powder.
Others who failed to appear in court for tax evasion charges include Annastasia Wangui Ng'ang'a, who was charged for evading Sh11,541,615 in both income and VAT between 2016 and 2019, Douglas Kathurima Mwiti, Saeed Sheikh Abdirahman, Sidoman Investments Limited, Christopher Odongo Asoka and his company Emergency Relief Supplies Limited, Florence Wanjiku Muiruri, Moses Boyi Odhiambo and Daniel Ngugi.
